Environmental policy and profitability. Evidence from Swedish industry
AbstractThe purpose of this paper is to investigate the existence of a “Porter effect” using firm level data on output and inputs from Swedish industry between 1990 and 2004. By utilizing a factor demand modeling approach, and specifying a profit function which has a technology component dependent upon firm specific effective tax on CO2, we are able to separate out the effect of regulatory pressure on technological progress. The results indicate that there is evidence of a reversed “Porter effect” in most industrial sectors, specifically energy intensive industries.
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Bibliographic InfoPaper provided by Sustainable Investment Research Platform in its series Sustainable Investment and Corporate Governance Working Papers with number 2009/2.
Length: 35 pages
Date of creation: 21 Mar 2009
Date of revision:
Contact details of provider:
Postal: Economics of Corporate Sustainability Management, Department of Industrial Economics and Management, Royal Institute of Technology, SE-100 44 Stockholm, SWEDEN
Phone: 08-790 78 61
Fax: 08-790 76 17
Web page: http://www.sirps.se
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CO2 tax; factor demands; induced technological change; Porter argument;
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-28 (All new papers)
- NEP-EFF-2009-03-28 (Efficiency & Productivity)
- NEP-ENE-2009-03-28 (Energy Economics)
- NEP-ENV-2009-03-28 (Environmental Economics)
- NEP-RES-2009-03-28 (Resource Economics)
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